Sunday, 24 August 2014

The Secrets to the Nazi Economic Success

 The Nazi rule is undoubtedly one of the most brutal governments to ever surface the world. However the reason for their popularity and success was due to Hitler's ability to act on his political promises, following an unsuccessful decade under the failing eyes of the Weimar Republic. Hitler seized the opportunity taking the German Workers Party from a minor political group to the feared Nazi in under 15 years.

The Weimar Republic were never popular following the Treat of Versailles, and hyperinflation occurring simply 4 years after it's formation didn't help the hostility. Prices shot up at a ridiculous rate, meaning people on fixed incomes and pensions were badly hit. A perfect opportunity for the National Socialists to stir up a rebellion amongst the working class. Although the Munich Putsch was crushed, and hyperinflation was followed by 5 years of prosperity, it was clear from the beginning that the government was destined for failure.

The main problems of the Weimar Republic were the standard of living and the unemployment rate, which were raised by the Great Depression which badly affected Germany – as they found themselves owing the USA in particular a lot of money for war reparations. Although Germany wasn't the only European country to suffer, their economy was in a particularly poor state, giving Hitler the opportunity he needed to take control.

Hitler's main aims for Germany were set straight in Mein Kampf, a prosperous Germany with plenty of Lebensraum, alongside a fully Aryan race. This coincided with the extermination of Jews, the homeless, Gypsies, women, homosexuals and disabled people. Not only were they exterminated, sent to concentration camps or arrested – but the Jews also lost German citizenship in the Nuremberg Laws of 1935. That shows how the number was easily manipulated by the Nazis, to show both the world and their own people how effective their methods were for unemployment. Of course that was not all they did. They created jobs for unemployed men planting trees, creating new travel routes and farm work plus those who were deemed 'work shy' (refused work) were simply sent to concentration camps. And to combat the amount of young people without a job, well they reintroduced conscription – which of course broke Versailles however all of the major powers were wary of the rise of the Soviet Union, whilst also believing they were treated too harshly (apart from France). Germany's unemployment fell from 6 million to around 300,000 in 6 years – although it is quite clear the statistics released do not show the full picture.

Mein Kampf - Written by Hitler in prison
setting forth his Nazi ideologies
A major victory for Germany's economy was the Saar plebiscite in 1935 which was the first territorial gain of the Nazis and completely legal. The hope for the French was that as a neutral zone for 15 years, the locals opinion would sway away from Germany – particularly with the state of the economy. However a majority of the population were still German and a staggering 90.8% of the votes were to rejoin their homeland. This was an extremely important victory for Nazi Germany, as the Saar contained many coal mines allowing the Germans to once again prosper in a trade which had struggled to break through during the rule of the Weimar Republic.

Hjalmar Schacht was a well renown economist
and Reich Minister of Economics between 1934-7.
One of the reasons the Nazis were so effective all round is due to their unbelievably skilled professionals – and one of them was Dr Hjalmar Schacht – world renown economist. He devised a 'neuer plan' for the Nazis which could put Germany in a position of power once again. This involved a lot of industrial changes, including limiting imports – presumably to either prevent inflation, keep international spending down or to keep goods German fitting Hitler's patriotic philosophy. Despite losing his job over a dispute with Hitler over the readiness of the military (and claiming he was sent to a concentration camp in the Nuremberg Trials) – he set the stage for Göring's 'four year plan' which simply just added military and agricultural policies to what he'd already written, as well as more refineries, aluminium plants and factories also being created.


The Nazi economy was undeniably better than the previous governments, and allowed them to threaten the worlds major powers after just 6 years. Had they listened to Schacht, kept producing goods and developed even further, then who knows there could have been a different outcome to the war. Nonetheless they made the best out of a bad situation, and delivered on their promise to the Germans who weren't affected by their manifesto of ethnic cleansing.

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